All RE5 questions
Financial Products Apply knowledge of the financial products and services environment
What is the overarching reason a representative must apply sound knowledge of the financial products they advise on?
RE5 practice question with a worked answer. This is one of hundreds of FSCA RE5 questions in the RegulatoryExams question bank.
- a) To avoid having to keep any record of the advice.
- b) To charge the client the highest possible fee.
- c) To sidestep the needs-analysis requirement.
- d) To ensure the product and service recommended are accurate and appropriate to the client's needs.Correct
Why this is the answer
Sound product knowledge ensures accurate, appropriate recommendations for the client. It is not a means to maximise fees, avoid record-keeping, or skip the needs analysis.
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